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Cullerton following through on pledge to replace video gaming with cigarette tax

Wednesday, Mar 16, 2011 - Posted by Rich Miller

* I told you yesterday that Senate President Cullerton wanted to replace the video gaming component of the capital bill with a cigarette tax. I told subscribers today why I believed he was doing it. Cullerton unveiled his proposal today

In a surprise move, Senate President John Cullerton Wednesday took steps to gut the controversial 2009 state law that authorized video gambling machines in bars and restaurants throughout the state.

The measure, if passed by both chambers of the Legislature and enacted by Gov. Quinn, would represent a 180-degree shift from when video gambling was regarded as a $534 million cash cow to support the governor’s $31 billion capital program. […]

“It’s obviously a very controversial plan. It has yet to generate a single dollar for the capital program. Right now, the Senate president is gauging whether there is sufficient support to repeal it,” Cullerton spokeswoman Rikeesha Phelon said.

On Wednesday, Cullerton attached the repeal language to a bill he is sponsoring, but the package has not had a hearing. […]

…the Illinois Gaming Board has added about 50 investigators in preparation for the roll-out of such gaming and begun background checks on 116 license applicants after estimating the first video gambling machines would be functioning by late summer or early fall, spokesman Gene O’Shea told the Sun-Times.

Could you be for this swap?

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Protected: *** UPDATED x2 - More problems with IPI story *** SUBSCRIBERS ONLY: Officials: Story about Rep. Rita is flat-out wrong

Wednesday, Mar 16, 2011 - Posted by Rich Miller

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Question of the day

Wednesday, Mar 16, 2011 - Posted by Rich Miller

* Yes, we’re going to do another one. We’ve been getting tons of comments and votes on our polls about this subject, so let’s keep it going.

The concealed carry bill includes this section

…nothing in this paragraph shall preclude a member of the [General Assembly or local governmental body] or registered lobbyist holding a concealed firearms permit from carrying a concealed firearm at a meeting of the body.

* The Question: Should legislators and registered lobbyists be allowed to carry concealed guns at the Statehouse during session? Take the poll and then explain your answer in comments…


  95 Comments      


Will Amazon run out of places to flee?

Wednesday, Mar 16, 2011 - Posted by Rich Miller

* If more states enact this law, then Amazon may have no choice but to finally start collecting sales taxes. A federal solution would be preferable, but it doesn’t appear likely. Anyway, leaving California would be a big deal and could eat into the company’s profits

Amazon.com has threatened to cut off more than 10,000 affiliates in California if state lawmakers pass legislation requiring the Internet retailer to collect sales tax from state residents.

Seattle-based Amazon said four bills introduced in the state legislature are unconstitutional because they would require sellers with no physical presence in California to collect sales tax from its residents, Paul Misener, Amazon’s vice president for global public policy, wrote in a letter (PDF) to the California Board of Equalization, the state agency responsible for collecting property and sales taxes. […]

Amazon has closed its affiliate programs in Colorado, North Carolina, and Rhode Island over similar disputes. And in February, Amazon threatened to close a distribution facility in Texas after receiving a $269 million bill for uncollected sales taxes.

Illinois now has a similar law on its books and the company has announced that it will cut ties with its associates here next month. Amazon has filed suit against a New York law.

* The fight is certainly spreading

Here’s a list of states with bills pending that would require out-of-state retailers to collect sales tax from online shoppers, if they use affiliates within that state:

* Arizona: HB 2551
* California: AB 153 and AB 155 (similar bill)
* Connecticut: HB 5543; HB 5545 (similar bill); SB 259 (companion bill)
* Hawaii: HB 1183
* Illinois: SB 1783 (would reverse HB 3569’s affiliate definition)
* Massachusetts: HO 1731
* Minnesota: SB 458
* Mississippi: HB 363 (died in House Ways and Means committee)
* New Mexico: SB 95 and HB 102 (companion bill)
* Rhode Island: HB 5115 (would repeal existing Nexus law)
* Tennessee: HB1912
* Texas: HB 1317
* Vermont: HB 143

Keep in mind that an introduced bill doesn’t mean the bill will actually pass. Bills are really easy to introduce.

* The Tennessee fight looks interesting

Tennessee retailers, led by Walmart, are putting a full court press on the state Legislature to prevent a sales tax exemption for Amazon. The online retailer is building distribution centers near Chattanooga, and with a physical presence in the state it is possible for the state to require the company to collect and remit sales tax on any items bought by Tennessee residents.

But initially, state government—eyeing 1,200 jobs at the centers—has said Amazon doesn’t have to collect sales tax.

Tennessee retailers have to collect sales tax and turn it over to the state and small businesses in Tennessee selling online are supposed to collect sales tax and do likewise.

* Texas insisted that Amazon pay the tax, and now it may be pulling up some big stakes

As a result of an ongoing tax dispute with Texas, Amazon.com has decided to take its ball and go home.

The online retailer said Thursday that it would shutter its Irving distribution facility April 12 and cancel plans to hire as many as 1,000 additional workers rather than pay Texas what the state says is owed in uncollected sales tax.

Texas wants $269 million from Seattle-based Amazon in past-due sales tax. It sent the bill to the company last October.

“Despite much hard work and the support of other Texas officials, we’ve been unable to come to a resolution with the Texas comptroller’s office,” Dave Clark, vice president of operations for the facility, said in a letter sent to its employees here announcing the closure.

* In the meantime, Wisconsin might pick up some Illinois jobs

The owner of a Rockford area business speaks out for the first time since the governor signed a bill he says, will force his company out of state.

FatWallet Founder and CEO Tim Strom isn’t happy about the bill. Illinois Governor Pat Quinn signed it last week. It forces out-of-state companies that do business with companies like FatWallet, to pay Illinois sales taxes. That’s something they don’t do in surrounding states. “We’ve already begun the process of looking at where we want to relocate outside the state of Illinois moving to Wisconsin is the simplest thing to do from an ease point of view,” says FatWallet CEO Tim Strom.

If this new tax bill isn’t repealed, Storm says it’ll cost his company between 30% and 40% of its revenue. Some companies like Amazon and Overstock have already said they’ll cut ties with FatWallet next month. Storm says the law hurts any person or non-profit in Illinois that puts a link to something for sale on their website because the seller has to pay sales tax on it. “There’s going to be a lot of people that are online affiliates that simply use it to supplement their income for posting a link on their website, and there are certainly charities that use this methodology for generating income as well those are going to shut down.”

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Reporters to governor: Renew your commitment to open government

Wednesday, Mar 16, 2011 - Posted by Rich Miller

* The Chicago Tribune was given exclusive access to cover the governor’s signing of the death penalty abolition bill.

As you might imagine, that didn’t go over too well with the rest of the Statehouse press corps. It’s not that reporters bore a grudge against the Tribune reporter. Heck, most of us would probably have accepted the exclusivity offer. But this was a huge, momentous bill, perhaps the most important legislation that Gov. Pat Quinn will ever sign. So, the decision rankled.

Yesterday, this letter was hand-delivered to the governor’s office…

We, the undersigned members of the Statehouse press corps, object strenuously to your decision to single out one particular news organization to witness and photograph the signing of historic legislation repealing the death penalty.

Your enactment of Senate Bill 3539 carries enormous impact. It affects the accused, judges, juries, prosecutors, the 15 death row inmates whose sentences you commuted and the family members of those murdered in some of the state’s worst crimes. No one media organization deserved greater access than the others in covering this official action and disseminating the historic news to Illinois’ 13 million residents.

Think for a moment what our democracy might be like if a judge could give one news organization exclusive access to a jury verdict. What if a legislative leader could bar all journalists _ except one _ from covering an important vote of the General Assembly? We would all regard those hypotheticals as anti-democratic and serious breaches of the First Amendment.

Our aim in writing this letter is to emphasize the importance of doing government business in the open and to urge you to renew your commitment to that ideal for the duration of your time as governor.

You have said the state’s residents deserve an “open, ethical and transparent government.” Yet, this week, you slammed your office door on that principle by letting only a cherry-picked few witness your official action on one of Illinois’ most important days.

We hope you would acknowledge that no single news organization should arbitrarily be granted special access to an official event.

Regards

I signed the letter as well.

* Meanwhile, in other reform news

Illinois Republicans are collecting online petition signatures to prevent former state Rep. Careen Gordon, D-Morris, from being appointed to the Illinois Prisoner Review Board.

Nominated for the post by Gov. Pat Quinn, Gordon’s appointment has been pending since she left office in January. Republicans charged Gordon, who now lives in Chicago, voted for the 67 percent Illinois income tax increase in exchange for the review board salary of $86,000.

The tax increase passed by one vote in the House and one vote in the Senate.

Republicans oppose the nomination because Gordon voted in favor of the tax increase during a winter lame duck session after denouncing the Quinn’s tax hike ambitions during her failed re-election campaign against Sue Rezin, R-Morris.

The online petition is here.

* And then there’s this

If you are running for office, should you be able to change parties in the middle of the campaign?

Lawmakers are attempting to answer that question with a proposal that a House committee approved Tuesday.

Sponsored by Rep. Mike Fortner, R-West Chicago, House Bill 2009 will bar candidates from running for office if they have already run under a different party in the same election year. Flip-floppers must wait for the next election cycle before they become eligible again.

“This makes it clearer to the candidates, clearer to the voters what is acceptable under state law, and it really just captures what the Illinois Supreme Court told us,” Fortner said.

But not everybody is happy…

For example, under this measure someone couldn’t run under one political party’s banner in a primary and a different political party’s in the general election.

Ron Michaelson, a political studies professor at the University of Illinois at Springfield, found fault with this idea.

“We should not make it difficult for people to run for office. It should be relatively easy for people to run for office, and then let the voters decide whether these people are indeed qualified candidates,” Michaelson said.

Scott Lee Cohen would’ve been barred from running for governor as an independent last year if this bill had been the law of the land. So, it has that going for it.

What do you think?

* Related…

* Suburbs’ big-money campaigners could face more limits

* Challenges levied at open government

* VIDEO: Fortner on Flip-Floppers

* Flood of legislation greets Illinois lawmakers, lobbyists, interest groups

  14 Comments      


Quinn’s budget director green lights employee pension contribution increase

Wednesday, Mar 16, 2011 - Posted by Rich Miller

* From the Wall Street Journal

Lawmakers in Illinois say they may try to fix the state’s ailing pension system by asking current workers to pay more into the plan, though the approach faces substantial legal and political obstacles.

The lawmakers are also entertaining the politically difficult idea of applying broader pension changes made this year for newly hired employees to current workers. Those include raising the retirement age and scaling back on annual cost-of-living raises. […]

“There is growing momentum for additional pension reform and this is something that definitely should be looked at,” said [budget director David Vaught].

He added that if the legislature voted to increase employee contributions in the current legislative session, Mr. Quinn, a Democrat, “would not stand in its way.”

House GOP Leader Tom Cross has a bill that would hike current employee pension contributions to 20 percent of salary. The idea would be to “encourage” workers to opt out of the defined benefit system and move to either an annuity program (similar to what SURS uses) or a 401(k) type dealio.

Discuss.

* Other budget-related stuff…

* ADDED: Editorial: Raise cigarette tax $1 to fund road plan

* ADDED: Editorial: Don’t blame unions for fiscal problems

* Quinn budget chief doled out pay hikes: On Jan. 13, while Quinn approved a 66 percent increase in the income tax, Vaught voted to boost the pay of Aaron Carter, director of the Illinois Procurement Policy Board, and Will Blount, who serves as a senior procurement analyst with the five-person agency.

* Chuck Sweeny: Republicans not convinced by sad budget stories

* CollegeIllinois’ promise of tuition benefits looks iffy: That sounds reasonable, except that the unspecified “cancellation fees” are found in the fine print. They are: “The lesser of $100 or 50% of amount paid.” Yes, taken literally, that means you could lose half the amount you deposited by withdrawing from your contract!

* House committee votes to bar 3rd Street rail funding

* Cigarette tax hike runs into opposition: Republicans charged Cullerton is manufacturing a crisis over the construction money as a way to push the cigarette tax hike because he has long sought an increase in the 98 cents-per-pack the state now levies. Officials with both Gov. Pat Quinn’s budget office and the state transportation department said no road or construction programs are held up this year because of the appellate court decision.

* Buck-a-pack cig tax proposed: Steve Brown, spokesman for House Speaker Michael Madigan, D-Chicago, said he’s not aware of any discussions about this latest proposal to hike the cigarette tax. He also said there are mixed feelings among lawmakers about the need to reauthorize the capital plan while the case is still in the courts. Some lawmakers think the state will prevail, and others believe there already are enough projects under way to get the state through another construction season.

* Cullerton eyes cigarette tax hike, GOP backs away

* VIDEO: John Cullerton on Cigarette Tax

* Vouchers Bubble Up Again In Springfield: Sponsored by State Sen. Matt Murphy (R-Palatine), the bill mirrors the vouchers proposal State Sen. James Meeks (D-Chicago) put on the table about a year ago. No specific numbers of student and costs are detailed in SB 1932, but Meeks’ bill, which passed the Senate but ultimately failed in the House, would have given up to 30,000 CPS students a voucher worth about $3,700.

* TIF Reform Comes To Springfield: A host of TIF bills have been introduced into the current General Assembly. One of the bills proposed would exempt Chicago Public Schools from the taxing bodies that lose property tax dollars because of the existence of TIF districts in the city. Another would send “surplus” TIF dollars back to the taxing bodies each year.

* Legislator: Metra board wasting money, should resign

* Anderson: Quinn plan off base - Regional superintendent turns to county board for support

* Illinois law signed requiring voter referendums for expanded community mental health services

  65 Comments      


WLS shames itself again

Wednesday, Mar 16, 2011 - Posted by Rich Miller

* He compared himself to the Japanese tsunami victims but claims others are cynical scoundrels? Sheesh

Rod Blagojevich got behind the mic at WLS-890 AM Wednesday morning during which he compared his ousting as governor to the tragedy in Japan, calling it a “tsunami that happened to me” and called Springfield lawmakers “cynical scoundrels.”

* And he still claims he was “highjacked” from office so that the remaining Democrats could pass a tax increase

Blagojevich set his sights on political life and former colleagues, namely who he called the “unholy trinity of Democrats”: Gov. Pat Quinn, House Speaker Michael Madigan and Senate Pres. John Cullerton.

“What’s on my mind today are things like the taxes, the Illinois taxes,” Blagojevich said at the start of his 5-9 a.m. stint filling in for Don and Roma on the “Don Wade and Roma Show.”

“I was hijacked from office. Pat Quinn got there, and he made a deal with [Madigan and Cullerton] that he was going to sock it to the people and solve the problems of government on the backs of the hard-working people of Illinois … not by making government more efficient.”

Yeah. His impeachment had nothing whatsoever to do with his arrest. Right.

How WLS could give this convicted doofus a microphone is just beyond me.

* Meanwhile, could Fitz be leaving? He’s apparently on a prestigious short list

U.S. Attorney Patrick Fitzgerald is reportedly on the short list of candidates being eyed to replace outgoing FBI Director Robert S. Mueller.

Citing sources, both the Washington Post and the Wall Street Journal on Tuesday included Fitzgerald on the list of top candidates. […]

The leading candidate is reportedly another Chicago native, Michael Mason. Mason is a former top official at the FBI’s Washington field office currently serving as Verizon Communications’ top security chief.

  34 Comments      


The House “Agri-Culture-Wars” Committee strikes again

Wednesday, Mar 16, 2011 - Posted by Rich Miller

* We’ve talked before about all the non-agriculture bills which have been assigned to the House Agriculture Committee. Yesterday, the committee held a hearing on two bills opposed by pro-choice forces, which sparked a “Women are Not Livestock” protest

The House Agriculture and Conservation Committee, which is dominated by conservative downstate Democrats and Republicans, [yesterday] unanimously approved a measure that would require Illinois abortion clinics to meet tougher regulations to continue providing services.

Under the proposal, clinics that perform more than 50 abortions a year would be required to meet the same regulatory requirements as other medical outpatient surgery clinics.

* Three bills were actually assigned for debate in the committee yesterday. Two passed, but one was held up because a pro-choice Senator had already pre-filed to sponsor the bill, effectively killing it in that chamber...

All three sponsors of the bills denied asking that their bills be sent to the Agriculture Committee and did not know who made the decision to put their bills before the panel, though all complimented House Speaker Michael Madigan (D-Chicago) for giving their bills a chance to be heard.

“I don’t know,” said [GOP Rep. Darlene] Senger, when asked why her abortion-clinic bill was in front of the farming committee. “These committees have been all over the place this time. I got some other bills in some crazy places right now, too.”

But House Majority Leader Barbara Flynn Currie (D-Chicago), who chairs the House Rules Committee that assigns bills to committees, said rank-and-file legislators make the request as to where their bills go in the earliest stages of the legislative process.

* As you an see, the “why” behind the bill assignments is a bit murky. The sponsors aren’t taking responsibility, but Speaker Madigan’s office is pointing the finger of blame at them

When asked if the ideological makeup of the committee was the reason for the bill’s assignment, Senger said, “I couldn’t comment on that.”

But Steve Brown, spokesman for House Speaker Michael Madigan, D-Chicago, said the legislation went to the committee at Senger’s request.

And

Senger denies requesting the committee assignment for her bill, or even knowing how it got there. She suggested that other lawmakers or lobbyists may have had some input into the committee assignment.

That could be.

* Back to the protest

“I’m not sure what agriculture has to do with women’s reproductive health care,” said Rep. Elaine Nekritz, D-Northbrook, who wore one of the shirts on the House floor.

Rep. Sara Feigenholtz, D-Chicago, said there were agendas floating to erode the rights of women.

“Even worse, they seem to be going to the most inappropriate committees here in Springfield that deal with livestock,” she said. “Personally, I think it should offend every woman in the state of Illinois that those bills were sent to that committee.”

Asked if she thought they were sent there because of the more conservative makeup of the committee, increasing the proposals’ chances of making it onto the House floor, Feigenholtz said, “You think?”

And

“They’ve spent more time asking questions about road kill and muskrats than they did (debating) this bill,'’ before passing it 13-0, complained Ed Yohnka of the American Civil Liberties Union, which opposes the bill.

* An unusual defense

Peter Breen of the Thomas More Society, who testified for the bill in committee, made one of the few attempts to justify the committee assignment. He maintained the bill is an attempt to regulate potentially unsafe abortion clinics, and said: “They say women are not livestock. We completely agree, which is why they should not be treated like that.'’

* The last word

But even some conservatives, like state Rep. Mike Bost, R-Murphysboro, question the committee’s catch-all jurisdiction over conservative social issues. Bost got a big laugh from the protestors when he presented an unrelated bill with the announcement that “it might actually be an agricultural bill.'’

“I’m always amazed at what goes through the Ag Committee,'’ he said later. “I’m pro-gun, I’m pro-life, but you have to question it.'’

Discuss.

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Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax (use all CAPS in password)

Wednesday, Mar 16, 2011 - Posted by Rich Miller

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Cullerton: Replace video poker with cigarette tax hike

Tuesday, Mar 15, 2011 - Posted by Rich Miller

* I told subscribers about this earlier today

Democratic Senate President John Cullerton on Tuesday intends to call for $1-a-pack increase in the state cigarette tax to avoid missing a road construction season as Illinois’ major public works program hangs in limbo.

The call by Cullerton, D-Chicago, comes after a state appellate court in January tossed out the law that authorized the $31 billion construction package and with it the liquor tax increase and video poker legalization that were to pay for it all.

The judges ruled lawmakers bundled too many topics in one piece of legislation to pass constitutional muster. The ruling is on hold while the Illinois Supreme Court hears the case filed by Rocky Wirtz, the owner of a liquor empire and the Blackhawks hockey team. Wirtz opposed the higher liquor tax.

Aides said Cullerton remains confident the high court will overturn the ruling, but doesn’t want to wait and risk missing a construction season that could put people to work.

More

The state’s 98-cent-a-pack cigarette tax has been in place since 2002, and Illinois rests in the middle of the pack nationally among states with cigarette taxes. New York has the highest state cigarette tax in the country at $4.35 a pack.

A cigarette tax increase in Illinois is no sure legislative bet, however. Attempts to raise the cigarette tax by $1.01 a pack in January stalled in the House by a 51-66 vote. Sixty votes were needed for passage. […]

The video-poker component that would have placed the electronic gambling machines in bars and restaurants throughout the state has been a virtual non-starter since it was imposed in 2009.

Chicago has refused to permit the machines in the city while more than 60 other local governments have voted to opt out of the controversial program.

* A recent poll by the Paul Simon Institute found that a large majority of southern Illinoisans supports the buck a pack tax hike

The poll, taken Feb. 14-22, showed 60.3 percent of registered voters in the state’s southernmost 18 counties favor a $1 per pack increase in the cigarette tax. There were 36 percent opposed. The rest were undecided.

But when asked about raising other taxes, such as the sales tax or the income tax, southern Illinoisans were opposed and said they favored cuts to spending to plug the state’s budget deficit. The inaugural Southern Illinois Poll, conducted last year, found similar opposition.

Thoughts?

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Protected: SUBSCRIBERS ONLY - Supplement to today’s edition and a big Statehouse roundup

Tuesday, Mar 15, 2011 - Posted by Rich Miller

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Question of the day

Tuesday, Mar 15, 2011 - Posted by Rich Miller

* People are mostly keeping their tempers in check in comments, so let’s try one more of these.

Another front in the battle over concealed carry is what to do about college campuses. The schools want to be completely exempted from having to allow concealed carry. Several establishments are already exempt, including sports stadiums, taverns, schools, casinos, child care facilities, etc. Proponents like sponsoring Rep. Brandon Phelps and the NRA are willing to talk about a compromise: Exempt buildings within college campuses, but not the campuses themselves

Phelps said the debate over colleges and universities is whether to ban weapons within the boundaries of college campus or just in individual buildings on a campus.

He favors barring guns from buildings.

“What would happen if you’re dropping somebody off or picking somebody up on campus and you have your gun with you?” Phelps said.

Laws regarding concealed weapons vary by state. A 2008 study by the American Association of State Colleges and Universities found that 26 states prohibit guns on public college campuses, while 23 allow the schools to determine their own weapons policies. […]

Todd Vandermyde, lobbyist for the National Rifle Association, says banning concealed weapons from an entire campus is impractical because many universities are spread across large areas of a community and often straddle busy state thoroughfares.

Vandermyde told Lee Newspapers that the NRA will “not accept” a total campus ban.

* The Question: Should concealed carry be forbidden on entire university campuses or just in campus buildings? Take the poll and then make sure to explain your answer in comments. Thanks…


* In case you were wondering, 61.9 percent of you said yesterday that businesses should not have to face liability if they ban concealed carry on their premises and a concealed carry permit holder is injured during a crime.

  147 Comments      


Building a 21st Century Electric Grid Requires a 21st Century Regulatory System

Tuesday, Mar 15, 2011 - Posted by Advertising Department

[The following is a paid advertisement.]

Most agree that Illinois needs to modernize its electric grid to meet the demands of the digital age. Forty-four states ─ and even Guam ─ have some type of Smart Grid investment program in process. But Illinois is stalled. To stay economically competitive, we must catch up.

But grid modernization in Illinois is stalled by an outmoded regulatory process that discourages exactly the kind of long-term, comprehensive planning that’s needed to get modernization done.

The Energy Infrastructure Modernization Act (HB 14) proposes a better system for setting utility rates. It provides even more transparency and accountability than current regulation with more frequent regulatory review and new performance metrics to keep utilities accountable.

Some have suggested that modifying regulatory oversight is synonymous with reducing regulatory oversight. That’s simply not true. HB14 is not about less regulation it’s about smarter regulation.

Every resident and business in Illinois will benefit if lawmakers, regulators, utilities and consumer groups can come together over the next few weeks to develop a policy path that drives modernization of our grid, while protecting consumers as strongly as ever.

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Today’s charts

Tuesday, Mar 15, 2011 - Posted by Rich Miller

* The National Alliance on Mental Illness released a study this week showing that Illinois was in the top ten for mental health cuts in Fiscal Years 2009-2011

* Click the pic for a larger version of this chart…

That would be 850,000 marijuana arrests in 2007.

Discuss.

  13 Comments      


Are Illinois nuke plants safe?

Tuesday, Mar 15, 2011 - Posted by Rich Miller

* I’ve seen several of these stories crop up this week since the Japan disaster. Are Illinois nuke plants safe?

“We are on a slippery slope,” says Mary Olson, director of the Southeast Office of the Nuclear Information and Resource Service, a networking center founded in 1978 for activists and environmentalists concerned about nuclear power. She notes that Illinois is in the seismic zone of the New Madrid fault that some say is overdue for a major earthquake, is prone to tornadoes and has 11 nuclear reactors, a handful of which are of the same 1970s design as the troubled reactors in Japan.

But Farmer said the age of the reactors wasn’t a factor in the disaster caused by the “double whammy” of a record earthquake and historic tsunami.

And a statement released Monday from John Rowe, chairman and CEO of Exelon Corp., the parent of Warrenville-based Exelon Nuclear, one of the major owners and operators of U.S. nuclear plants, says, ”Our plants are safe, particularly given the different seismic patterns in our regions and the absence of tsunami-type events where we have operations.”

He says the plants are protected against earthquakes, floods and other natural disasters, but “still we watch, we learn, and we will work with the Nuclear Regulatory Commission and other policymakers, as well as industry colleagues, on what, if anything, should be done to apply what can be learned from this unprecedented situation.”

* Our oldest four reactors have the same design as the failed Japanese nukes

Four of the Illinois reactors have the same design and manufacturer as the first reactor to fail Saturday at the Fukushima Dai-ichi plant northeast of Tokyo, said the Nuclear Energy Institute, the U.S. trade group for the industry.

Those reactors, produced by General Electric Co. and with the model name Mark I, also are in place at Exelon’s two reactors at Dresden, near Joliet, and at its two Quad Cities reactors.

* Exelon’s claims that the plants are safe ring hollow to some

Some residents who live near the power plant in Braidwood re-evaluated their confidence in Exelon when they discovered in 2006 that the company had allowed water contaminated with radioactive tritium to leach outside the plant boundaries toward neighboring homes.

* And the IEPA has had its troubles as well

Kraft also referred to an Illinois auditor general’s report last month that found the Illinois Environmental Protection Agency missed quarterly inspections at two nuclear plants in each of the last two fiscal years.

Oy.

* So, what about it. Are they safe? Well, the biggest earthquake fault line is pretty far from the nearest nuke plant

Kraft told the Beacon that the impact of earthquake on the Japanese reactors can give experts “a rough idea of how these reactors would respond to, say, the New Madrid fault” if a major earthquake would strike the region. Even though the New Madrid earthquakes of 1811-12 struck mainly in southwestern Illinois and southeastern Missouri — relatively far from the sites of the four Mark I reactors — Kraft contended that, because quakes inside continents can cause “soil liquification,” that can impact wider areas.

That’s true. That big New Madrid quake rang church bells in Boston and reversed the flow of the Mississippi River.

* And Exelon’s Rowe isn’t the only person I’ve seen say the tsunami, not the earthquake itself, is what did the biggest damage to the Japanese plants…

Damage to Tokyo Electric’s nuclear stations in Fukushima prefecture was primarily from the tsunami, not the earthquake, Exelon Chief Executive Officer John Rowe said today in a statement.

“Our plants are safe, particularly given the different seismic patterns in our regions and the absence of tsunami-type events where we operate,” Rowe said.

From the New York Times

Critics of nuclear energy have long questioned the viability of nuclear power in earthquake-prone regions like Japan. Reactors have been designed with such concerns in mind, but preliminary assessments of the Fukushima Daiichi accidents suggested that too little attention was paid to the threat of tsunami. It appeared that the reactors withstood the powerful earthquake, but the ocean waves damaged generators and backup systems, harming the ability to cool the reactors.

* Still. the Japanese crisis is having an impact on Wall Street

On Monday, Exelon’s stock fell 27 cents, or 0.63%, to $42.89 on three times its average volume. The stock was down about 2% earlier in the day before recovering most of its loss.

And in DC

In a letter Monday afternoon ,Chicago Congressman Bobby Rush, ranking member of the House Energy and Power Subcommittee, asked for hearings on nuclear plant risks, saying, that “we should not accept the industry’s assurances without conducting our own independent evaluation.”

And at the Illinois Statehouse

A chief sponsor of legislation lifting the 1987 ban [on nuclear plant construction] said Monday the effort is on indefinite hold after the catastrophic events at a nuclear power station in Japan. But state Rep. JoAnn Osmond said the question remains of how to best meet future energy demands. […]

Osmond said she was inclined to leave the bill in committee this year over the issue of nuclear-waste storage, even before the events in Japan.

“We’ve had many discussions, and the big thing is waste and how do we establish a (storage) facility. We’re looking for a better angle on that,” said Osmond. “We have to learn from Japan and look at things that we could do better.”

Waste is my biggest concern. But these power companies have been running their plants at very high levels since the industry was revamped here. They’re doing everything they can to squeeze every last bit of juice out of those nukes, so it’s something to think about.

  33 Comments      


Paving the highway with good intentions

Tuesday, Mar 15, 2011 - Posted by Rich Miller

* The leadership contribution cap idea is taken as a given by editorial writers and pundits who believe that the reform would vastly improve the Springfield climate. I’m not so sure

For a political system that is supposed to operate with checks and balances, Illinois has too many big money checks and not enough balance.

We’re referring to a loophole in campaign finance reform enacted last year that limits private donations and primary-election spending, but that lets state parties and legislative leaders dole out all the money they want to favored candidates in general elections. […]

Ideally, support for candidates in a state legislative race should come from people living in the district. But as the law now stands, only the state parties and legislative leaders —through their political action committees —may donate unlimited amounts. Everyone else is relegated to the sidelines in what amounts to proxy wars between the state’s top politicians.

That’s why the Legislature should advance two bills supported by the Illinois Campaign for Political Reform — one in the Senate and one in the House — that would cap donations from political parties and legislative leaders in general elections. The limits would be set at $300,000 for a statewide race and $85,000 for individual House and Senate candidates. House Minority Leader Tom Cross is backing a separate bill that would set even lower limits.

Less money from leaders to candidates would necessarily mean less influence by leaders, right? Well, yeah, but this won’t accomplish that at all.

Instead of focusing on pie in the sky fantasies about how things maybe should be run, let’s look at how things actually do run.

Most of the money spent in these races is on direct mail and TV. Almost all the direct mail sent out by House and Senate Democratic candidates is funneled through the Democratic Party of Illinois account in order to obtain a substantial postage discount. The Republicans do the same thing through the Illinois Republican Party. The caucus leaders also spend a lot of TV dollars on behalf of candidates.

Take, for instance, Sen. John Mulroe (D-Chicago). Mulroe “raised” $364K in cash and received another $385K in in-kind contributions during the last six months of 2010. Most of those in-kinds were from DPI and the Senate Democratic Victory Fund. The mailers said “Paid for by the Democratic Party of Illinois” and the cable TV ads said they were “Paid for by the Senate Democratic Victory Fund.”

You could legally cap the in-kind cash spent by parties and caucus leaders. But you cannot legally cap the cash they can spend on behalf of their candidates via what are known as “independent expenditures.”

Look at what happens in federal races. The big dogs swoop down and spend loads of cash on TV, radio and mail via independent expenditures. Candidates are prohibited by law from even knowing about that spending. Candidates cannot, by law, control the message. On one hand, it gives them an easy way out if the DC types go way over the top. But on the other hand, they have literally no say in how money is being spent on their behalf.

Do you see what I’m getting at here?

If Illinois caps leader and party contributions, then rank and file candidates will - by force of law - have even less input on their races than they do now (and they don’t have a whole lot of input now). The leaders won’t stop spending money. The DC model already proves that. They’ll just spend money without consulting the candidates whatsoever, because they’ll be barred by law from doing so. In-kind expenditures with messages like “Paid for by DPI,” will simply be replaced by independent expenditures with messages like “Paid for by DPI,” and few in the voting public will ever notice the difference.

I’m figuring that Leader Cross is well aware of this reality. Kudos to him for recognizing a very easy press pop. But his idea won’t reform a thing. If anything, leadership power will only become more concentrated.

Everybody wants an easy solution. There are none. Remember the Cutback Amendment? It was supposed to be an easy way of breaking up the Statehouse power institutions. Instead, it built the career of the longest-serving House Speaker in US history.

Money and power will always find a way.

* Speaking of independent expenditures, I told subscribers about this weeks ago

On Jan. 31, three co-chairmen of Ms. Braun’s campaign finance committee — Elzie Higginbottom, Cecil Butler and Leon Finney Jr. — formed a political group called United Communities of Chicago Inc. The group soon reported accepting checks from donors who already had given the maximum amount permitted under the new law to the Carol for Chicago fund, Ms. Braun’s campaign committee, according to state records.

Mr. Finney and another prominent Braun supporter, John W. Rogers Jr., head of Ariel Investments, had contributed $5,000 each to Carol for Chicago on Jan. 19. Mr. Rogers gave another $5,000 to United Communities of Chicago on Feb. 8, and Mr. Finney donated a total of $8,500 to the group before the election.

The Braun campaign isn’t required to report this to the state because it’s an independent expenditure, so, legally, she can have no role in it. How three members of Carol Moseley Braun’s campaign finance committee could do this “independently” is another question, however. But even the Illinois Campaign for Political Reform wasn’t sure whether it was a violation or not when I checked with them last month.

* Also, contribution bundling is done all the time at the federal level, so it’s no big surprise that it’s now happening under our new DC-modeled campaign reform law

The Puigs, longtime masonry contractors, pooled $30,000 for Mr. Chico’s ultimately unsuccessful campaign in one day in early February, writing $5,000 checks in the names of six separately incorporated, family-owned businesses, state and city records show. […]

Another situation that arose in the mayoral race involved 10 people affiliated with the Jimmy John’s restaurant chain, each of whom contributed $5,000 to Rahm Emanuel’s campaign less than two weeks before Mr. Emanuel won the election. When Crain’s Chicago Business asked Mr. Emanuel’s aides about those donations, a spokesman for the campaign said the $50,000 from those donors had been returned “out of an abundance of caution and to avoid even the suggestion of impropriety.”

Direct corporate contributions are prohibited under federal law, so that first item about the Puig family wouldn’t happen at the DC level, probably for that very reason. But banning corporate contributions wouldn’t be easy here. And, frankly, they could just write checks from individual family members to get around a ban if it was ever enacted.

Also, I’m betting that the Jimmy John’s contributions were more likely returned because of the owner’s threat to move his corporate headquarters out of Illinois than any worry over a legal violation. As long as it was their own cash, that bundling was perfectly legal under our new law.

* And speaking of good intentions, while this has nothing to do with campaign reform, it’s a reform that appears to be backfiring. The Chicago Public Schools is feeding more breakfasts to more children, but they’re now doing it during classroom hours, instead of before school

So chew on this: children are losing, perhaps, 20 minutes each day. That’s 57 hours over 170 school days, or more than 10 days — of instructional time.

* Related…

* Legislative Leaders and Parties Pay for 63% of Spending in Hot Races

* Chart: 2010 Targeted Legislative Races Total Expenditures and Leader/Party Support

* Appointments lag to State Board of Elections

* Let the sun shine in

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